Abdulhakeem Alkhayyat, the Managing Director and CEO of KFH-Bahrain, stressed on the major advantages of the Islamic banking and finance system and discussed the future directions of the industry. Alkhayyat’s presentation opened the first session of the seminar entitled “Islamic Banking: Is it the way forward?”, where he emphasized that the main elements of the Islamic finance industry are based on real long term guarantees with an asset based system and that is the foundation stone of Islamic banks.
“The government needs to issue more sukuk in order to provide short-term liquidity instruments that Islamic finance needs, we cannot look to the private sector to provide this. Most financial institutions in the region have sufficient liquidity and have no need to raise money through Islamic bonds so it falls on governments to raise cash if they are to provide the necessary sukuk to allow Islamic financial institutions to hold these instruments. Islamic financial institutions by nature utilize funds in development projects that stimulate the economy,” he added. (Press Release)